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Traffic World OnLine - Trucking
YRC Bankruptcy Risk High, says Analyst
1/26/2009
John Gallagher
Associate Editor
Details of the waiver conditions YRC Worldwide obtained from its bank lenders Jan. 16 reveal that the nation's largest trucking company may not have improved its chances of avoiding bankruptcy, according to Wall Street analyst Ed Wolfe of Wolfe Research.
YRC's banks provided the waivers until mid-February to allow sufficient time to amend its credit facilities and renew asset backed securitization without a delay in reporting the company's 2008 results.
However, Wolfe pointed out that the temporary waivers, which expire Feb. 17, carry conditions, including restricting YRC from executing asset sales of above $30 million. The waivers terminate if YRC incurs more than $30 million of additional indebtedness, fails to deposit cash proceeds from asset sales into an account maintained by the administrative agent under the credit agreement, or requests a loan other than a disbursement related to a letter of credit, among other conditions.
"We believe the restrictive conditions in these waivers likely shows how little hand YRCW has left in these negotiations and we continue to believe a high risk of some form of bankruptcy remains."
I feel sorry for those people at YRC and their families for the seemingly inevitable loss of their livelihood...
This will be the death of an icon in our industry due to some very bad management decisions. I have followed this fiasco for quite sometime. Their CEO is an idiot. He and his minions managed to get a guaranteed severance package approved by the Board of Directors as recently as last week.
Amazing...kill a company and livelihood of thousands and walk away with enough money to live well for the rest of your days.
I have friend of mine who works for them with over 20 years seniority and he figures he is out of a job after the COO.
Pathetic!!!!!
So heres to our friends and colleagues in the BIZ...better times are coming for you and yours...my prayers are with you
![Guiness :guiness: :guiness:](/bb/styles/default/xenforo/smilies2/guiness.gif)
Rat :loser: